860C.5034/1–1446: Telegram
The Acting Secretary of State to the Ambassador in Poland (Lane)
us urgent
29. Urtels 15, Jan. 4; 18, undated; 34, Jan. 8.15 In connection with nationalization law you are authorized, if you perceive no objection, to address note to PolGov along following lines:16
- 1.
- This Govt, having studied carefully terms of nationalization law of Jan 3, 1946, particularly those provisions relating to compensation for property subject to nationalization, desires to communicate to PolGov its views concerning this question.
- 2.
- In view of this Govt, nationals of US are entitled to adequate and effective compensation for such of their property as is nationalized by PolGov. Compensation features of legislation are of such a general character that adequate and effective compensation appears neither to be assured nor precluded. Whether or not satisfactory compensation is made would appear to depend on administrative decisions under the broad discretionary features of the law.
- 3.
- This Govt recognizes that present financial position of Poland does not permit immediate settlement in dollars or currencies freely convertible into dollars for property of US nationals taken by PolGov. However, it believes that compensation, if it is to be effective and hence acceptable, should be made in a manner which will permit conversion of proceeds into dollars at the earliest possible time.
- 4.
- Attention of PolGov is invited to Article I of Treaty of
Friendship, Commerce, and Navigation between Poland and the
United States, signed June 15, 1931, which provides in part as
follows: [Page 380]
“The nationals of each High Contracting Party shall receive within the territories of the other, upon submitting to conditions imposed upon its nationals, the most constant protection and security for their persons and property, and shall enjoy in this respect that degree of protection that is required by international law. Their property shall not be taken without due process of law and without payment of just compensation.”
- 5.
- In the spirit of this undertaking, it is proposed that this Govt and PolGov establish a mixed commission, composed of an equal number of representatives of each Govt, to determine in detail how just compensation shall be made for properties of US nationals subject to nationalization law. In view of this Govt, commission should decide which assets subject to nationalization are owned by US nationals, amount of compensation to be paid for each such holding taken by PolGov, and means by which compensation is to be paid; and should deal with such other related matters as may be mutually agreed upon.
- 6.
- This Govt is deeply concerned at unwillingness of PolGov to permit certain US nationals to enter Poland and survey present condition of their property which is subject to nationalization. Present policy of PolGov in this respect is felt to be inconsistent with letter and spirit of Treaty of Friendship, Commerce, and Consular Eights referred to above. This Govt would welcome assurances by PolGov that US nationals will henceforth be permitted to exercise their right to survey their properties located in Poland, and to enjoy all privileges necessary to the exercise of this right. Work of proposed mixed commission would be seriously handicapped if representatives of this Govt were unable to obtain full information from US nationals interested in property subject to nationalization.
- 7.
- This Govt wishes to reiterate its desire to establish a basis for durable and mutually beneficial economic cooperation between Poland and the US. It believes that a just and equitable solution to the problems raised herein will greatly facilitate future economic cooperation between the two countries.
For confidential info of Ambassador, decision on proposed Eximbank credit to Poland will be withheld pending PolGov reply to this note, and Rajchman will be so informed after note is delivered. At time of delivering note to Rzymowski you are authorized in your discretion to refer to his remark to you (urtel 19, Jan 5) to effect that 1931 treaty does not conform to 1945 conditions and to say that your Govt is unable to reconcile this statement with the repeated assurances which have been given to you that Prov. PolGov fully accepts the obligations of that treaty.